LPG crisis: No respite for restaurants yet
MUMBAI/BENGALURU: The restaurant industry is struggling to run regular operations due to the meagre supplies of LPG cylinders . With the govt’s move to hike commercial LPG allocation to up to 70%, it will take some time before the measure actually translates into sustained supply, executives said. “Supply is still hugely limited and erratic. A feeling of uncertainty looms large,” said Anurag Katriar, founder at Indigo Hospitality. The key question is how quickly this revised allocation will translate into on-ground availability, said Pradeep Shetty, vice-president at Federation of Hotel & Restaurant Associations of India (FHRAI). Watch Centre Pushes PNG: LPG Supply May Be Stopped Where Pipelines Are Available A walk along Indiranagar’s 12th Main, known for its cluster of independent restaurants, reflects the strain. “It is all hand-to-mouth at this point,” said Nikhil Gupta, who runs brands including The Pizza Bakery and Paris Panini . The move doesn’t directly help the restaurant sector which is still getting 20%-30% of LPG supplies, said Sagar Daryani, co-founder & CEO at Wow! Momo Foods and president at National Restaurant Association of India (NRAI). State-wise, the supply situation varies with some such as Maharashtra, Karnataka, Rajasthan restricting allocation for restaurants, hurting the sector , Daryani said. Poll How long do you predict it will take for improved LPG allocation to benefit restaurants?
Govt, RBI plan to equally spread FY27 borrowings
MUMBAI: The govt on Friday said that it plans to borrow Rs 8.2 lakh crore between April and Sept this year under its Budget-approved borrowing programme, roughly half of the Rs 16.2 lakh crore in total. The borrowing for the first half of fiscal 2027 would be spread over 26 weekly auctions with about 25% of the total borrowing coming from longer-duration govt securities, that of 30-50-years tenures.Earlier in the day, the benchmark yield on the 10-year gilts hit an intra-day high at 6.95%, the level not seen since July 2024, as the war in West Asia is now threatening the govt’s fiscal numbers and raising chances of an economic slowdown. Against the backdrop of a very uncertain market environment with high energy prices, currency depreciation and rising global fixed income yield, bond market players said that the govt’s announced borrowing calendar is likely to provide some relief to the ovareall market sentiment.According to Ramkamal Samanta, CIO, Star Union Dai-ichi Life Insurance, gilt market participants would feel positive from three factors: The recently concluded switch of govt bonds, the equally spread borrowing in FY27 and the lower share of long-dated papers compared to in FY26.
Govt moves bill to decriminalise laws for businesses, individuals
NEW DELHI: Govt on Friday moved a fresh bill to decriminalise provisions across 79 central laws as part of its efforts to make life simpler for businesses and individuals.Govt officials said along with amendments to the Companies Act, which are currently pending in Parliament, as well as the new income tax law, the overall decriminalisation exercise now covers over 1,000 provisions.The amendments cover laws as diverse as Damodar Valley Corporation to the ones governing road transport corporations and Central Silk Board and New Delhi Municipal Corporation.For instance, violations related to making of rules and regulations for road transport corporations will no longer attract jail terms. Similarly, some of the offences related to “mischief” caused in the development or maintenance of a national highway, will not face imprisonment. Same is the case with some of the offences under The Slum Areas (Improvement and Clearance) Act, 1956 as well as the Mines and Minerals (Development and Regulations) Act, DDA Act and the Delhi Municipal Corporation Act.An overhaul of the 153-year-old Cattle Trespass Act will decriminalise key offences, replace jail terms with financial penalties and route collected fines to animal welfare. The definition of cattle, so far limited to bovines, is being expanded to include camels, buffaloes, horses, pigs, sheep and goats.Under the Drugs and Cosmetics Act, for manufacturing or sale of spurious cosmetics, instead of one year jail, there will be a fine that can be extended up to three times the value of the seized product. Govt has proposed to reduce the jail term for interfering with seized items, such as food and vehicles, under the Food Safety and Standards Act, 2006, from a maximum of six months to three months.It also seeks to carry out 20 amendments under the Motor Vehicle Act, to relax some compliances and resolve legal ambiguities. These include, allowing vehicle registration throughout the state instead of at a particular jurisdiction, providing a grace period of 30 days after the expiry of the licence, during which the licence will remain effective.In all, 784 provisions are proposed to be amended under the bill, of which 717 provisions are being decriminalised and in the case of 67 provisions, the idea is to make life simpler.The bill proposes to remove imprisonment in 57 provisions and fines in 158 provisions. Also, imprisonment is proposed to be reduced in 17 provisions, and imprisonment and fines are proposed to be converted to a penalty in 113 provisions.
Centre, oil companies to split impact of higher crude
NEW DELHI: The Centre’s move to slash excise and impose windfall tax on diesel and aviation fuel will leave it poorer by around Rs 1.3 lakh crore if the energy crisis due to the West Asia conflict persists for a full year.An early resolution will reduce the pressure on oil prices and consequently on govt and oil companies. On Thursday, ratings agency ICRA had said that the recently set up Economic Stabilisation Fund can help offset some of the fiscal impact.For the moment, it has managed to ensure that consumers are fully protected as the oil retailers and govt will split the burden of higher crude prices. For the oil marketing companies (OMCs), which will have to take a hit during the March quarter, the impact will not be significant if the Indian basket remains around the current level of $112 a barrel.“With the recent reduction in excise duty and no change in the retail prices of petrol and diesel, OMCs are expected to break even at a crude oil price of around $106 a barrel for their refining and retailing operations, vis-à-vis around $90 a barrel before this excise duty cut,” CareEdge Ratings said in a note.For the current fiscal year, however, oil companies are fully protected as they raked in profits on every litre of petrol that was sold by them until the war broke out, just as the Centre was mopping up revenue, as the gains from lower oil prices were not passed on.For the states, revenue from VAT is likely to increase by at least Rs 25,000 crore in FY27, with Karnataka being the top gainer, SBI Research said in a report, while suggesting that they should lower the levy in line with the Centre.
Credit-deposit ratio of banks touches a record 83%
MUMBAI: Credit-deposit ratio of banks hit an all-time high of 83% as of March 15, 2026, after deposits fell and credit continued to expand during the reporting fortnight.Aggregate deposits declined by Rs 1.8 lakh crore duCredit growth outpaced deposit mobilisation through the current financial year, with incremental credit at Rs 25.3 lakh crore exceeding incremental deposits of Rs 24.3 lakh crore. As a result, the incremental credit-deposit ratio stood at 103.9%. Historically, an 80% credit-deposit ratio is seen as healthy as it factors in the 3% of bank deposits that have to be maintained as cash reserves (CRR) and 18% in liquid govt bonds (statutory liquidity ratio) ring the fortnight to Rs 250 lakh crore, while bank credit rose by Rs 18,672 crore to Rs 207.6 lakh crore. According to data, the divergence between deposits and credit pushed the ratio to a record level.Credit growth outpaced deposit mobilisation through the current financial year, with incremental credit at Rs 25.3 lakh crore exceeding incremental deposits of Rs 24.3 lakh crore. As a result, the incremental credit-deposit ratio stood at 103.9%. Historically, an 80% credit-deposit ratio is seen as healthy as it factors in the 3% of bank deposits that have to be maintained as cash reserves (CRR) and 18% in liquid govt bonds (statutory liquidity ratio)The decline in deposits alongside the expansion in credit widened the gap between credit growth (13.8%) and deposit growth of (10.8%) for the financial year.Before the current financial year, the last period when credit-deposit ratio consistently crossed 100% was between late 2022 and late 2023, covering FY23 and early FY24. During the pandemic recovery phase, pent-up corporate and retail credit demand surged at 16%-17% YoY, while deposit growth lagged at 9%-10%, keeping the ratio in the 100%-130% range.Part of the recent credit surge reflects a change in reporting dates from alternate Fridays to the 15th and 30th of each month, which captures quarter-end disbursements by banks.
1 month on, Iran war leaves investors poorer by Rs 41.4 lakh crore
MUMBAI: The day the war in West Asia completed a month, Dalal Street witnessed one of its most brutal sell-offs since the conflict began on Feb 28. During Friday’s session, with sensex-heavyweight Reliance Industries tanking 4.6%, the index closed 1,690 points or 2.3% lower at 73,583 points.The crash in RIL’s stock price that came on the back of imposition of windfall tax on petro-product exporters by govt, the rupee’s slide to a record low level against the dollar, rising bond yields and strong foreign fund selling, all because of the war in West Asia, led to Friday’s slide in stocks, market players said. Sensex tanks 1690 points The sell-off left investors poorer by nearly Rs 9 lakh crore with BSE’s market capitalisation now at Rs 422.2 lakh crore, exchange data showed.Foreign funds were again the main sellers of stocks with the net outflow figure at Rs 4,367 crore, BSE data showed.Since the war between the US-Israel and Iran started, the sensex has lost a little over 7,700 points or 9.5% while investors are poorer by about Rs 41.4 lakh crore. During the same period, foreign portfolio investors (FPIs) have net taken out a little over Rs 1.1 lakh crore from the domestic stock market, data from NSDL and BSE showed. Poll How concerned are you about the impact of the war in West Asia on the Indian stock market? According to Vinod Nair of Geojit Investments, Indian equities ended lower after a volatile session as rising bond yields coupled with negative cues from western markets and mixed Asian performance kept investors on the edge. Nair feels that the near-term sentiment for market remained fragile amid geopolitical risks and potential earnings downgrades due to supply shocks.
RBI curbs net open positions of banks in forex markets
MUMBAI: For the first time in nearly 15 years, the RBI has placed curbs on the size of bets that banks can take in the currency markets, taking away powers, hitherto, vested with bank boards. The move comes at a time when the rupee is under pressure due to a combination of sales by foreign institutional investors, a rise in the oil import bill, and the overhang of tariffs and visa curbs on exports.RBI’s direction on Friday caps banks’ net open position in rupee at $100 million, effective April 10, 2026, citing “market conditions.” Hitherto, the net open position limit was fixed by the boards of banks.Bankers said that while speculation helps provide liquidity in the forex market, in volatile times, when markets are one-sided, such bets can be self-fulfilling.Post-2013, banks set their own Net Overnight Open Position Limits (NOOPL) up to 25% of Tier I/II capital, with RBI reserving discretion to impose market-driven caps. In Dec 2011, RBI had curbed net open position limits in currency trading by 75% for some banks and 50% for top banks. The move had come after the domestic currency weakened by as much as 20%. Poll What do you think is the primary reason for the RBI to impose these new betting limits? Incidentally, RBI had in Jan issued draft directions on calculating net open position and capital charge for foreign exchange risk, inviting comments from stakeholders. The central bank had proposed the new rules to come into effect from April 1, 2027. The new norms also seek to remove the separate calculation for offshore and onshore net open positions.
Steel, auto, chemicals to gain from more LPG flow
The govt on Friday moved to cushion key industries from the ongoing gas supply disruption, boosting commercial LPG allocations by 20% to reach 70% of pre-crisis levels. The extra supply will prioritise labour-intensive sectors such as steel, automobiles, textiles, dyes, chemicals, and plastics, which are critical for broader economic activity.The move is aimed at stabilising industrial operations, said Prashant Vasisht, senior vice president (corporate ratings) at ICRA, adding that increased domestic LPG production and alternative imports have “reduced the deficit, providing some comfort.” Watch Centre Pushes PNG: LPG Supply May Be Stopped Where Pipelines Are Available Pankaj Chadha, chairman of engineering exports body EEPC India, said the measure will help steel mills, particularly smaller units, maintain production. “Steel is a key segment of the engineering goods sector, and its shortage could severely impact the production chain. The additional LPG allocation should minimise supply bottlenecks and ensure steady output,” he added. To Reach 70% of Pre-Crisis Levels | Move To Prioritise Labour-Intensive Sectors The garment sector, however, sees the step as partial relief but doubts it will meet even half of its near-term demand. Yarn processing, crucial for garment production, is largely gas-powered. Supply to hundreds of units in Tiruppur has been cut for 10 days, affecting around 1 lakh employees. The shortage has disrupted the credit cycle and risks favouring well-capitalised buyers, while costs for raw materials, including polyester yarn, and transportation have increased. Alexander Neroth, director of NC John Garments, said, “Freight and raw materials costs have risen substantially, making it difficult to get yarns processed.”The gas shortage started with the West Asian conflict and the near-closure of the Strait of Hormuz to commercial shipping, prompting the government on March 12 to curtail commercial LPG allocations to 20%. Since then, allocations have gradually increased to 70% of pre-crisis levels.Access to the additional 20% is conditional. Industrial users must register with oil marketing companies such as Indian Oil Corporation, HPCL, and BPCL, and apply for piped natural gas connections with city gas distribution entities to qualify. Process industries and units relying on LPG for specialised heating needs, where natural gas cannot substitute, will get priority.Manufacturers across sectors are adapting to the shortage with various measures to maintain production. Ajay Singhania, MD of EPACK Durable, noted that LPG and piped gas shortages had cut production by nearly 50% over the past three weeks. “We have initiated interim measures like partial fuel-switching across processes, but these come with efficiency and cost trade-offs. For the consumer durables sector, where demand is seasonal, consistent energy availability is critical to ensure timely production,” he said.Auto component makers, particularly forging and casting units, continued production with some shifting to in-house solar powered electrical heating. A Chennai-based exporter said the transition to renewable energy helped in navigating the situation with relative ease, even as inventories have fallen from 15–20 days to 2–3 days. Smaller firms, he added, are feeling the strain due to heavier dependence on LPG.(With contributions from Reeba Zachariah, G Balachandar, Vaitheeswaran B and Asmita Dey)
Rupee breaches 94, worst fiscal year fall in over a decade
MUMBAI: The rupee breached the 94 level for the first time to close at 94.81 per dollar after hitting a record low of 94.84, declining about 4% since late Feb and 11% in the current fiscal year, marking its worst financial year performance in over a decade.Many analysts are forecasting that oil prices will remain above $100 per barrel for several weeks, pushing up the import bill and inflation. Dealers said that pressure on the rupee has been driven more by heavy foreign investor selloffs than by the West Asia conflict, with outflows crossing $13 billion this month, an all-time high. “More than the West Asia war the pressure on rupee is from heavy sell off by the FIIs, which has already crossed more than 13 billion dollars this month. Which itself is an all time record. In case of de-escalation there would be a correction of at least 2%. Also there is an expectation of $4.4 billion dollars inflows from the Mitsubishi-Shriram Finance deal . This will severely boost the falling Rupee,” said KN Dey, a forex consultant.Domestic equity markets declined sharply, while benchmark bond yields rose to multi-month highs, reflecting tightening financial conditions. Foreign investors accelerated outflows from domestic equities and bonds amid heightened concerns over inflation, currency weakness, and external imbalances.Growth forecasts have been revised downward, while expectations of interest rate hikes over the next year have strengthened. Govt has cut excise duty to keep fuel prices under check, but the move is expected to put pressure on the fiscal deficit and increase borrowing. Poll How concerned are you about the impact of rising inflation on the economy? Despite some signals of de-escalation, the currency remains under pressure amid sustained global uncertainty. “The rupee is expected to trade in a weak range of 93.25–94.25, with downside bias likely to persist until clear progress in Iran peace talks emerges,” said Jateen Trivedi, analyst with LKP Securities.
E-cheques coming soon? RBI unveils Payments Vision 2028, plans wider oversight of digital players
The Reserve Bank of India (RBI) on Friday unveiled its ‘Payments Vision 2028’ document, outlining a roadmap that includes exploring electronic cheques, expanding regulatory oversight to digital platforms, and strengthening safeguards in the fast-growing payments ecosystem, PTI reported.The central bank said it will examine the introduction of e-cheques to combine the advantages of paper instruments with the speed and reliability of digital payments. “To leverage the unique benefits of paper-based instruments and the speed and reliability of electronic payments, and cater to new business use cases, the introduction of electronic cheques in India shall be explored,” the RBI said.Alongside, the RBI is considering widening the regulatory ambit to include entities such as e-commerce marketplaces and centralised platforms that play a growing role in facilitating digital transactions.“In addition, e-commerce marketplaces and centralized platforms have been assuming significant responsibilities that could have implications on the orderly functioning of the payments ecosystem. These aspects shall be examined in detail and, if required, the scope of direct regulations shall be extended to cover such entities,” the document said.The vision document also proposes allowing users to enable or disable transactions across digital payment modes, similar to controls available for card transactions.To address fraud risks, the RBI is exploring a “shared responsibility framework” under which both the issuing bank and the beneficiary bank would share liability in cases of unauthorised digital transactions.The central bank also plans to review cheque design and security features, introduce a Domestic Legal Entity Identifier (DLEI) framework for better transaction traceability, and bring in a Cyber Key Risk Indicators (KRI) framework for non-bank payment system operators.Other initiatives include exploring white-label solutions in the Aadhaar Enabled Payment System (AePS), developing interoperability in the Trade Receivables e-Discounting System (TReDS), and introducing a ‘Payments Switching Service’ to ease customer migration across platforms.The RBI said it will also review the cross-border payments ecosystem to improve efficiency and streamline authorisation processes, alongside publishing periodic reports on global and domestic payment trends.Additionally, the central bank aims to enhance access to payment data and reimagine the card payments ecosystem by promoting secure tokenisation, improved transparency in pricing, and greater choice for users and merchants.
